Use the information below to answer the following questions.
Fact 30.1.1 Inflation Control Target Renewal
The 2011 inflation control target agreement between the Government of Canada and the Bank of Canada runs to the end of 2016.
Source: Bank of Canada, November 2011
-Refer to Fact 30.1.1. In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following except that
A) the target will continue to be defined in terms of the 12-month rate of change in the total CPI.
B) the inflation target will continue to be 2 percent.
C) the agreement will run until December 31, 2016.
D) if the CPI becomes too volatile, in the future the target will be defined in terms of the 12-month rate of change in the core CPI.
E) the inflation-control range is 1 percent to 3 percent a year.
Correct Answer:
Verified
Q13: What is the overnight loans rate?
A)the percentage
Q14: Use the information below to answer the
Q15: As the sole issuer of Canadian money,
Q16: The operating band is
A)the interest rate that
Q17: How can the Bank of Canada use
Q19: How is responsibility for monetary policy set
Q20: The objective of the Bank of Canada's
Q21: The settlement balances rate is the
A)proportion of
Q22: In an open market operation aimed at
Q23: The policy tools used by the Bank
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